Financial Statements

An Income Statement is also knows as a:

• Revenue and Cost Statement

• Profit and Expense Statement

• Asset and Liability Statement

• Profit and Loss Statement

The three most important financial reports are:

• Revenue Report, Shareholder Equity, Profit Analysis

• Profit Analysis, Balance Sheet, Cash Flow Statement

• All answers are correct

• Income Statement, Balance Sheet, Cash Flow Statement

Income Statements answer the simple question:

• Is the company making a profit?

• Is the company competitive?

• Is the company ready to go public?

• None of the answers are correct

"Revenue" is defined as:

• The amount of equity a company has on hand at the end of the year

• The amount of money a company has after deducting expenses

• The amount of money a company takes in over a set amount of time

• The amount of profit shareholders get to keep

"Cost of Goods Sold (COGS)" is defined as:

• The total expenses a company incurs in a period of time

• The operational costs of all departments in a company

• All of the answers are correct

• The total cost to a business to manufacture and sell a specific product or service

Operating Expenses include:

• Rent on office space

• Office Supplies

• Salaries and Wages

• All answers are correct

Depreciation is:

• The cost of an asset when sold

• The loss of value of an asset over time

• None of the answers are correct

• The cost of an asset when purchased

“NET INCOME also known as NET PROFIT” is:

• Profit before you pay taxes and interest

• Profit before you deduct operating expenses

• The money used to pay taxes and health benefits

• Profit left over after all the expenses have been deducted from your total revenue

“Gross Profit Margin” calculates:

• The PERCENTAGE of profit a company makes on its goods and services

• The DOLLARS a company makes before paying commissions

• The DOLLARS a company makes after expenses

• All of the answers are correct

A balance sheet reports:

• A company's cash position and assets

• A company's profit, loss and expenses

• a company's assets on one side, and liabilities, and shareholder equity on the other

• None of the answers are correct